Information Systems Supporting
Business Processes
[Manshi Karki]
[Your Institutional Affiliation]
Question 1: What are the four major categories of information systems
that support business processes common to most organizations? Which
basic business functions do each provide?
Organizations utilize various information systems to enhance their business processes. The
four major categories include:
1. Transaction Processing Systems (TPS): These systems manage routine transactions such
as payroll, order processing, and inventory control.
2. Management Information Systems (MIS): Designed to provide managers with reports and
summaries to aid in decision-making.
3. Decision Support Systems (DSS): Assist in complex decision-making by analyzing data
and providing recommendations.
4. Enterprise Systems (ES): Integrate various business processes into a single system,
improving efficiency and communication across departments.
Question 2: What is supply chain management (SCM)? What is the most
important metric in supply chain management? What does it measure?
What are examples of supply chain management software? How is each
used to support supply chain processes?
Supply Chain Management (SCM) involves the coordination and management of activities
related to sourcing, procurement, production, logistics, and delivery of goods or services.
A critical metric in SCM is the Order Fulfillment Cycle Time, which measures the time taken
from receiving an order to delivering the product to the customer, indicating the efficiency
and responsiveness of the supply chain.
Examples of SCM software include:
- SAP SCM: Used for demand planning and real-time supply chain monitoring.
- Oracle SCM Cloud: Supports logistics and order management.
- IBM Sterling Supply Chain Suite: Assists with inventory tracking and warehouse
management.
- Manhattan Associates: Focuses on warehouse and transportation management.
Question 3: What is customer relationship management (CRM)? What are
the objectives of CRM? How do organizations measure their customer
relationship? How do information systems support each objective of
CRM? What are the three basic categories of CRM technologies? How do
information systems support activities in each area?
Customer Relationship Management (CRM) refers to strategies, technologies, and practices
that businesses use to manage and analyze customer interactions throughout the customer
lifecycle.
The objectives of CRM include improving customer satisfaction, increasing customer
retention, and enhancing sales and marketing efforts.
Organizations measure their customer relationships using metrics such as:
- Customer Retention Rate: Indicates the percentage of customers who continue doing
business over a specific period.
- Customer Lifetime Value (CLV): Estimates the total revenue a business can expect from a
single customer account.
- Net Promoter Score (NPS): Assesses customer loyalty by asking how likely they are to
recommend the company to others.
Information systems support CRM objectives by:
- Operational CRM: Automating customer service, sales, and marketing processes.
- Analytical CRM: Utilizing data analytics to understand customer behavior and preferences.
- Collaborative CRM: Enhancing communication across departments to provide a unified
customer experience.
Question 4: Why are Enterprise Resource Planning (ERP) systems
important to organizations? What are the typical components of an ERP
system? What are three approaches to ERP integration? What are some
of the issues associated with ERP implementation? What is the primary
benefit of a successful ERP implementation?
Enterprise Resource Planning (ERP) systems are crucial as they streamline business
processes by integrating various functions like finance, human resources, inventory, and
production into a single system.
Typical components of an ERP system include:
- Financial Management
- Human Resources Management
- Supply Chain Management
- Customer Relationship Management (CRM)
- Inventory and Procurement Management
Three approaches to ERP integration are:
1. Full Integration: All business processes utilize a single ERP system.
2. Best-of-Breed Approach: Different software solutions are employed for various functions.
3. Middleware Integration: Third-party software connects multiple systems.
Issues associated with ERP implementation include:
- High implementation costs
- Resistance to change among employees
- Data migration challenges
- Complexity of customization
The primary benefit of a successful ERP implementation is improved efficiency and
decision-making through real-time data sharing across departments.
References
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Scribbr. (2020, November 5). How to Cite a Website in APA Style | Format & Examples.
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